To take an early pension or NOT?

ApacheF1

Hello, I have a deferred pension from a previous employer that I could take now or hold on to .

I am 50 now, have my own business and other savings and investments so the £6K pension I would draw would not be needed to live on but could be put into another savings vehicle. I'm thinking that a bird in the hand might be worth two in the bush.

In 10 years I could have accumulated a little nest egg without the uncertainty of what my previous employer may do with his pension fund.

Any advice?

dunstonh

Your post suggests the pension is money purchase (the only type that gives a daily value). In which case your employer cannot do a thing with it and its just as safe as an ISA, unit trust or other investment.

If you are paranoid about the risk then transfer it into your own pension scheme. There is little point commencing the pension though as its the most tax free of all the options available but commencing it will make it taxable.